La Vita, So a reverse split works two ways
1) A company believes it is too expensive and wants to bring its price down so that smaller purchasers can partake in ownership. So, a 10/1 split brings a 1.00 stock down to 10 cents allowing for smaller buyers to dive in and purchase. So smaller players are able to buy in at a lower price share.
2) A company believes its stock price is too cheap, so a 10/1 split brings up the price, so purchasers feel that they are buying into stock with more value. Usually, performance, as maintained, degrades the price possible back down to near the pre-split price.
So, at this moment in time, you have invested 100% of your holdings and are willing to accept a reduction of value to 10 percent of that. Currently, there is no proof that the near-term value is going to increase by 10-fold. And you are OK with that. HesElite has pointed out so well why would you be OK with that?
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